The share of bank account holders who processed banking matters via online banking (PC or laptop) decreased notably in the United Kingdom (UK) between 2019 and 2024. According to Statista's Consumer Insights, the share of bank account holders who processed banking affairs via PC or laptop dropped from 58 percent in 2019 to 37 percent in the fourth quarter of 2024. Despite the downward trend, online banking remained one of the primary methods for processing banking affairs in the UK.

Over the five years through 2024-25, UK banks' revenue is expected to climb at a compound annual rate of 1.7% to £128.6 billion, including an anticipated hike of 2% in 2024-25. After the financial crisis in 2007-08, low interest rates limited banks' interest in loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks such as Lloyds have shut the doors of many branches and made substantial job cuts. Following the COVID-19 outbreak, the Bank of England adopted aggressive tightening of monetary policy, hiking interest rates to rein in spiralling inflation. The higher base rate environment lifted borrowing costs, driving interest income for banks, who reported skyrocketing profits in 2023-24. Although profit grew markedly, pressure to pass on higher rates to savers and fierce competition weighed on net interest income at the tail end of the year, the difference between interest paid and interest received. UK banks are set to continue performing well in 2024-25 as the higher interest rate environment maintains healthy interest income, aiding revenue growth. However, net interest income is set to dip marginally due to higher deposit costs and narrow margins on mortgage loans. With further rate cuts priced into markets, savings rates will drop in 2024-25, stemming the drop in net interest income. Over the five years through 2029-30, industry revenue is forecast to swell at a compound annual rate of 3.3% to reach £151.1 billion. Regulatory restrictions, tougher stress tests and stringent lending criteria will also hamper revenue growth. Competition is set to remain fierce – both internally from lenders that deliver their services exclusively via digital channels and externally from alternative finance providers, like peer-to-peer lending platforms. The possibility of legislation like the Edinburgh reforms will drive investment and lending activity in the coming years, if introduced. However, concerns surrounding the repercussions of less stringent capital requirements and the already fragile nature of the UK financial system pose doubt as to whether any significant changes will be made.

Mobile banking usage in the United Kingdom (UK) saw significant growth between 2019 and 2024, with 73 percent of bank account holders managing their banking affairs via mobile devices in 2024. According to Statista's Consumer Insights, the share of respondents using smartphones or tablets for banking increased from 63 percent in 2019 to 73 percent in 2024. Conversely, branch banking experienced a notable decline during the same period, reflecting the shift towards digital banking solutions.

The total assets of the banking industry in the United Kingdom grew significantly between 2022 and 2023, despite some fluctuations in recent years. In 2023, the total assets held at banks amounted to roughly ***** trillion U.S. dollars, which was a slight decrease compared to the previous year. HSBC held the highest value of assets, followed by Barclays and Lloyds Banking Group.

Retail Banking Market Outlook

According to our latest research, the global retail banking market size reached USD 2.89 trillion in 2024, reflecting the sector’s robust expansion as digital transformation and evolving consumer preferences continue to reshape the financial services landscape. The market is projected to grow at a CAGR of 4.7% from 2025 to 2033, reaching an estimated USD 4.36 trillion by 2033. This impressive growth trajectory is driven by a combination of technological innovation, increased digital adoption, and the expanding financial inclusion initiatives across both developed and emerging economies.

One of the primary growth factors fueling the retail banking market is the accelerated pace of digitalization. Financial institutions worldwide are investing heavily in digital platforms, mobile applications, and omnichannel experiences to meet the changing expectations of tech-savvy consumers. The proliferation of smartphones and high-speed internet access has empowered customers to manage their finances remotely, making banking services more accessible and convenient. As a result, banks are prioritizing seamless online and mobile banking experiences, which not only enhance customer satisfaction but also reduce operational costs. This shift towards digital banking is expected to remain a critical driver for the retail banking market over the next decade.

Another significant factor contributing to the market’s growth is the increasing emphasis on financial inclusion, particularly in emerging markets. Governments and regulatory bodies are collaborating with financial institutions to extend banking services to unbanked and underbanked populations. Innovative products such as microloans, digital wallets, and simplified savings accounts are being introduced to cater to these segments, thereby expanding the customer base for retail banks. Additionally, the adoption of advanced technologies like artificial intelligence, machine learning, and data analytics is enabling banks to offer personalized financial solutions, improve risk assessment, and streamline operations, further propelling market expansion.

The competitive landscape in the retail banking market is also being reshaped by the entry of non-traditional players, including fintech firms and digital-only banks. These challengers are leveraging cutting-edge technology and agile business models to deliver innovative banking solutions, often at lower costs than traditional banks. This heightened competition is compelling established banks to accelerate their digital transformation initiatives and forge strategic partnerships to maintain their market share. Furthermore, evolving regulatory frameworks and open banking initiatives are fostering collaboration and innovation within the sector, creating new opportunities for growth and differentiation.

From a regional perspective, the Asia Pacific region continues to dominate the retail banking market, both in terms of market size and growth potential. Rapid urbanization, rising disposable incomes, and a burgeoning middle class are driving demand for retail banking services across countries such as China, India, and Southeast Asian nations. North America and Europe remain mature markets with high penetration rates, but ongoing digital transformation and the adoption of advanced banking technologies are sustaining steady growth. Meanwhile, Latin America and the Middle East & Africa are witnessing increased investments in banking infrastructure and digital platforms, paving the way for future market expansion.

Service Type Analysis

The retail banking market is segmented by service type into savings and checking accounts, loans, credit cards, mortgages, and others. Savings and checking accounts remain the cornerstone of retail banking, serving as the primary entry point for most customers. The demand for these accounts is being buoyed by increasing financial literacy, government-led financial inclusion programs, and the integration of digital onboarding

Market Size statistics on the Banks industry in the UK

The UK retail banking market, valued at approximately £68.77 billion in 2025, is projected to experience steady growth, driven by a combination of factors. Technological advancements, particularly in online and mobile banking, are significantly shaping customer preferences and driving market expansion. The increasing adoption of digital banking platforms, offering convenience and accessibility, is a key driver. Furthermore, the growing demand for personalized financial services and wealth management solutions among both individuals and businesses fuels market growth. Competition among established players like HSBC Holdings, Barclays PLC, and Lloyds Banking Group, along with the emergence of fintech companies, is fostering innovation and efficiency. Regulatory changes impacting lending practices and financial security also influence market dynamics. However, economic uncertainties and fluctuating interest rates pose potential challenges. The market is segmented by banking type (traditional, online, personal, business, wealth management), end-user (individuals, small businesses, corporates, high-net-worth individuals), and distribution channel (branches, online platforms, mobile apps). The shift toward digital channels presents opportunities for banks to enhance customer experience and optimize operational costs. While precise regional breakdowns within the UK are not provided, it is reasonable to expect that London and other major urban centers contribute significantly to the market size. Growth across regions will likely mirror national trends, influenced by factors such as regional economic performance, digital infrastructure availability, and the distribution of different customer segments. The projected CAGR of 3.45% indicates a consistent, albeit moderate, expansion over the forecast period (2025-2033). This moderate growth reflects the mature nature of the UK retail banking market and the potential for saturation in some segments. Nevertheless, continuous innovation and adaptation to evolving customer needs are expected to sustain the market's growth trajectory. Recent developments include: August 2024: Lloyds Bank launched a USD 137 cash offer for students opening current accounts. To qualify, students must deposit at least USD 622 between August 1 and October 31, 2024. Student account holders will also receive a 20% discount on selected Student Union events and can earn 2% interest on balances up to USD 6,219.September 2023: HSBC pioneered a partnership with Nova Credit, making it the first UK bank to allow newcomers to access their credit history from abroad. This initiative aims to facilitate smoother financial integration for individuals relocating to the United Kingdom.. Key drivers for this market are: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Potential restraints include: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Notable trends are: Deposit Trends and Digital Transformation Driving Traditional Banking.

The report covers Banking as a Service Companies in UK and the market is segmented by Component (Platform and Service (Professional Service and Managed Service)), by Type (API based BaaS and Cloud-based BaaS), by Enterprise Size (Large enterprise and Small & Medium enterprise), and by End-user (Banks, NBFC/Fintech Corporations and Others).

The return on equity (ROE) of the banking sector in the United Kingdom (UK) fluctuated notably in the period between 2012 and 2021. The lowest ROE was measured in 2012 at negative 5.1 percent. During the observed period, the highest ROE was reported in 2021, at roughly seven percent.

HSBC maintained its position as the largest bank in the United Kingdom by market capitalization from 2001 to 2024. On December 31, 2024, HSBC's market capitalization reached approximately 176.71 billion U.S. dollars, recovering to pre-pandemic levels and reinforcing its status as the largest European bank by market value. Bank market valuations during the pandemic The coronavirus pandemic significantly impacted global banking market capitalizations. In early 2020, the largest European banks experienced sharp declines in market value due to economic uncertainty. The worldwide banking market saw a substantial drop in market capitalization during 2020, with most major banks experiencing similar trends. However, the market began recovering throughout 2021, with banks gradually returning to pre-pandemic valuation levels. The banking industry in the UK The UK banking industry is led by five major chartered banks, increasingly challenged by digital banks like Starling and Monzo. Despite losing some customers domestically, HSBC remains significant - the largest bank in the United Kingdom and one of the world's largest financial institutions.

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In size, it was USD 2,107.9 million in 2025 and would reach USD 9,960.9 million in 2035, growing at a high CAGR of 16.8% over that period.

Metric	Value
Industry Size (2025E)	USD 2,107.9 Million
Industry Value (2035F)	USD 9,960.9 Million
CAGR (2025 to 2035)	16.8%

Sub Region Wise outlook

Sub Region	CAGR (2025 to 2035)
Greater London	17.4%

Sub Region	CAGR (2025 to 2035)
Scotland	16.5%

Sub Region	CAGR (2025 to 2035)
Wales	16.2%

Sub Region	CAGR (2025 to 2035)
Yorkshire and the Humber	16.6%

Competitive Outlook

Company Name	Estimated Market Share (%)
ClearBank Ltd.	18 - 22%
Railsr	14 - 18%
11:FS Foundry	10 - 14%
Thought Machine	8 - 12%
Other Players	34 - 40%

The UK Islamic Finance Market is Segmented by the Financial Sector (Islamic Banking, Islamic Insurance 'Takaful, ' Islamic Bonds 'Sukuk, ' Other Islamic Financial Institutions (OIFLs), and Islamic Funds). The Report Offers the Value (USD) for the Above Segments.

Bank concentration (%) in United Kingdom was reported at 42.91 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. United Kingdom - Bank concentration - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

The UK consumer banking market, encompassing a broad range of services from personal loans and mortgages to savings accounts and credit cards, is a dynamic and competitive landscape. While precise figures for market size and CAGR are absent, a reasonable estimate based on industry reports and similar developed economies suggests a 2025 market value exceeding £500 billion. The market's growth is propelled by several key drivers. Rising disposable incomes and a growing population fuel demand for financial products. Technological advancements, such as open banking and fintech innovations, are reshaping customer expectations and driving efficiency within the industry, leading to the adoption of digital banking and personalized financial management tools. Furthermore, changing regulatory landscapes, focusing on increased consumer protection and financial inclusion, are influencing market dynamics. However, the market faces certain headwinds. Intense competition among established players and emerging fintech companies keeps profit margins under pressure. Economic uncertainty, particularly fluctuating interest rates and potential recessionary periods, can significantly impact consumer spending and borrowing behavior, affecting the overall market growth. Stringent regulatory compliance and cybersecurity threats pose additional challenges for banks. Despite these constraints, the long-term outlook for the UK consumer banking market remains positive, driven by the sustained need for financial services, technological innovation, and evolving consumer preferences. Segmentation within the market, based on product type, customer demographics, and geographical location, presents opportunities for targeted growth and market penetration. The listed banks, including established players like Allied Irish Bank (UK) and newer entrants like Metro Bank, are constantly adapting their strategies to navigate this dynamic environment.

Companies in the Investment Banking industry provide financial advisory services, offering their insight on IPOs, M&As and equity and debt security underwriting activity. Competition has been fierce in recent years, with a flood of boutique firms entering the industry as bankers look for healthier rewards than those offered by the more regulated larger investment banks. Growing M&A and IPO activity before 2022-23 ramped up demand for investment banking services, although this momentum lost speed in 2022-23 as access to cheap capital ended. Revenue is expected to contract at a compound annual rate of 8.1% over the five years through 2025-26 to £8 billion, including an expected drop of 0.5% in 2025-26. Profit is also expected to edge downwards in 2025, though it remains high. Capital market activity surged at the height of the COVID-19 pandemic, lifting demand for investment banking services as governments and large international businesses across the world raised capital to fund fiscal stimuli and maintain cash flow levels. The boom in debt and equity markets showed no sign of slowing the next year, with IPO and M&A activity reaching record levels in 2021-22, driving demand for investment bankers’ services. However, in the two years through 2023-24, M&A activity plummeted thanks to rising interest rates, mounting geopolitical tensions and a gloomy economic outlook, which put companies off from seeking takeovers. In 2024-25, M&A activity fared better than IPOs, welcoming improvements in consumer confidence amid interest rate cuts, aiding revenue growth. However, IPOs continued on their downward trajectory as geopolitical uncertainty and high interest rates resulted in many companies delaying listings. Over 2025-26, M&A activity is forecast to continue to climb, but IPO activity may stall as Trump's tariff announcements erode investor sentiment, weighing on revenue growth. Revenue is anticipated to grow at a compound annual rate of 4.5% over the five years through 2030-31 to £10 billion. Deal activity is set to build as lower interest rates make leveraged transactions more attractive. Competition will remain fierce, driving technological innovation as investment banks try to improve decision-making processes and scale operations through the use of AI. Still, strong competition from overseas exchanges, like the S&P 500 in the US, will dent UK IPO activity in the coming years as companies move away from UK listings and the lacklustre valuations they offer, weighing on revenue growth.

Number of Businesses statistics on the Banks industry in the UK

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Community Banking Market Size 2025-2029

The community banking market size is forecast to increase by USD 253 billion at a CAGR of 5.8% between 2024 and 2029.

The market is experiencing significant shifts driven by the increasing adoption of microlending in developing nations and the rising preference for digital platforms. The microlending, a segment of community banking, is gaining traction in developing economies due to its ability to provide small loans to individuals and small businesses who lack access to traditional banking services. This trend is expected to continue, fueled by the growing financial inclusion efforts and increasing economic activity in these regions. Simultaneously, the community banking sector is witnessing a surge in the adoption of digital platforms.
The digital community banking services, such as mobile banking and online lending, are becoming increasingly popular due to their convenience and accessibility. This trend is particularly noticeable among younger demographics, who are more likely to use digital channels for banking. However, the market also faces challenges. One of the most significant obstacles is the lack of awareness about community banking services. Many potential customers, particularly in rural and underserved areas, are unaware of the benefits and availability of community banking services. Addressing this challenge will require targeted marketing efforts and community outreach programs.

What will be the Size of the Community Banking Market during the forecast period?

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The market continues to evolve, with advanced technology playing a pivotal role in shaping the landscape. Financial institutions, both large and small, are integrating microfinance, mobile banking, and remote deposit capture to cater to diverse customer needs. In the micropolitan areas, community banks have gained prominence, offering personalized services to rural and agricultural sectors. The economic recession led to a surge in digital adoption, with mobile banking becoming increasingly popular. However, the competition remains fierce, with big banks also investing heavily in technology to retain their customer base. The ongoing market dynamics underscore the need for continuous innovation and adaptation to stay competitive.
Community banks, with their focus on local markets and relationships, are well-positioned to leverage these trends and offer competitive rates and fees to attract and retain customers. The integration of advanced technology enables seamless transactions and enhanced customer experience, further bolstering their position in the market. The future of community banking lies in its ability to balance tradition and innovation, offering personalized services while embracing digital transformation.

How is this Community Banking Industry segmented?

The community banking industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Area

  Metropolitan
  Rural and micropolitan


Sector

  Small business
  CRE
  Agriculture


Service Type

  Retail banking
  Commercial banking
  Wealth management and financial advisory
  Others


Delivery Model

  Branch Banking
  Online Banking
  Mobile Banking


Institution Type

  Credit Unions
  Local Banks


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Area Insights

The metropolitan segment is estimated to witness significant growth during the forecast period.

In the dynamic world of financial services, community banks in the US continue to gain traction among consumers, particularly in rural and micropolitan areas where Big Banks may have a limited presence. While Big Banks dominate the market with their vast resources and broad reach, Community FIs cater to the unique needs of their local clientele. With the rise of advanced technology, Community banks have embraced digital banking solutions, including Internet banking, mobile banking, and remote deposit capture. Small businesses and agricultural sectors, integral to rural economies, benefit significantly from Community banks' personalized services and expertise. Despite the economic recession, these institutions have managed to maintain deposits through their strong relationships with customers.

Microlending, a niche offering, further distinguishes Community banks from their larger counterparts. Rates and fees remain crucial factors for customers, especially in a competitive market. Community banks often offer more competitive rates and lower fees compared to Big Banks, maki

In 2017, the United Kingdom’s three largest banks accounted for approximately ** percent of assets held by banks in the region. The UK’s largest bank had total assets valued at *** trillion euros in 2017 and held a market share of ** percent. In 2017, HSBC was also the largest bank in Europe.

The fall of Europe’s banks

Since the financial crisis, banks need to enhance profitability and ensure financial stability has seen the number of credit institutions fall. This alongside the rise in online banking, the need for physical bank branches has become less relevant. In 2017, Estonia’s physical banks had an average of over **** thousand customers per branch.

The United Kingdom’s finance sector

In 2017, the United Kingdom’s financial services sector employed more than *********** employees. Despite the rise of employment in the UK’s financial services sector, bank branches have seen a similar decline to the rest of Europe, with the North West seeing the largest number of branches closed in recent years. Between 1981 and 2018, some banks have seen as much as an 80 percent fall in branches nationwide.

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Open Banking Market Size 2024-2028

The open banking market size is forecast to increase by USD 57.66 billion at a CAGR of 27.2% between 2023 and 2028. The market is witnessing significant growth due to the increasing demand for advanced Financial Management Tools that offer real-time access to Financial Data from multiple Financial Institutions. Open Banking Solutions, which utilize Open Banking APIs, enable automated savings, real-time transactions, and enhanced security features. The integration of Artificial Intelligence (AI) into these services further streamlines financial management and enhances personalized customer experiences. However, the handling of sensitive personal financial data necessitates strict adherence to guidelines and regulations to ensure data security and privacy. Key market trends include the growing preference for faster and more seamless payment processing, increased focus on data security, and the potential for increased competition among Financial Institutions as they adapt to the Open Banking landscape.

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Open banking, a financial services model that enables third-party providers to access customers' financial data through APIs, is revolutionizing the payment ecosystem. This innovative approach allows for more customer-centric services, personalized financial offerings, and informed financial decisions. Broadband connectivity plays a crucial role in the open banking landscape, ensuring seamless access to real-time data for machine learning algorithms and AI applications. These technologies are integral to the open banking model, as they enable advanced data analytics and the development of innovative financial services. Security is a top priority in the market. Financial institutions are investing heavily in advanced security measures to protect sensitive customer data from online fraud. AI and machine learning algorithms are being employed to detect and prevent fraudulent activities in real-time. E-commerce and open banking are natural partners, with the former benefiting from the real-time financial data access provided by the latter.

Further, open banking APIs are the backbone of this new financial services model, allowing for seamless integration between financial institutions and third-party service providers. These APIs enable the sharing of financial data in a secure and standardized manner, facilitating the development of innovative financial services. Personalized financial services are a key benefit of open banking. By leveraging big data analytics and AI, financial institutions can offer customized offerings tailored to individual customers' financial needs and preferences. In conclusion, open banking is transforming the payment ecosystem by enabling real-time data access, advanced data analytics, and the development of innovative financial services. With a focus on security and customer-centricity, this model is poised to disrupt traditional financial services and reshape the industry landscape.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD Billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Service

  Banking and capital markets
  Payments
  Digital currencies


Deployment

  On premise
  Cloud


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  South America



  Middle East and Africa

By Service Insights

The banking and capital markets segment is estimated to witness significant growth during the forecast period. The market is revolutionizing the banking and financial services sector in the global payment ecosystem. Through strategic collaborations and innovative service offerings, Open Banking is enhancing payment processes, expanding investment accessibility, and promoting financial inclusion. In June 2024, Euronet, a leading financial technology and payments provider, partnered with Fintech Galaxy to introduce a new Banking as a Service (BaaS) offering. This collaboration aims to deliver faster, more secure, and cost-effective account-based transactions for banks, fintechs, and merchants. Key features of this service include card as a service, real-time payment processing, and advanced fraud detection. By integrating with consumer bank accounts, this solution reduces transaction costs and promotes financial inclusion, while also driving the adoption of digital transactions in the European region.

The integration of Artificial Intelligence (AI) and Machine Learning (ML) in Open Banking is further fueling the growth of the market. Big data analytics is enabling financial institutions to gain valuable insights into customer behavior and preferences, leading to personalized services and improved customer experience. The use of Open Banking is